23 Agustus 2016

[230816.EN.BIZ] Beijing Automotive To Invest US$819 Million In South African Car Plant

BEIJING Automotive
International Corp
has signed a deal with the Coega Development Corporation that runs an
industrial zone in Port Elizabeth, South Africa, to set up a US$819 million
auto assembly plant.

South
Africa's automotive-manufacturing industry is a bright spot of the economy,
which is expanding at its slowest pace since the 2009 recession, noted
Bloomberg.

South
Africa's government auto-incentive programme has attracted companies including
Toyota, Ford and BMW to set up and invest in auto plants.

The
industry has the potential to boost production by almost 50 per cent to more
than 900,000 vehicles a year by 2020, the local producers' group said in May.

The
investment is a result of agreements signed by South African President Jacob
Zuma and Chinese President Xi Jinping in December last year.

"The
size of this investment demonstrates confidence by China and confidence in
South Africa as an investment destination," said South African Trade and Industry
Minister Rob Davies.

Eastern
Cape province is "an automotive hub and has the potential of deepening the
component supply chain, job creation and economic development," he said.